TikTok’s Chinese owner ByteDance has signed binding agreements with American and international investors to run the app in the United States. TikTok chief executive Shou Zi Chew confirmed the move in a memo sent to employees on Thursday. The agreement reshapes ownership and governance of the platform’s American business.
New Ownership Structure Takes Shape
Half of the new joint venture will belong to a group of investors led by Oracle, Silver Lake, and Emirati firm MGX. Shou Zi Chew outlined the structure in an internal message shared with staff. The deal is scheduled to close on 22 January. It aims to resolve long-running pressure from Washington over national security concerns tied to Chinese ownership.
Washington Pressure Moves Toward Resolution
The agreement follows years of efforts by American officials to force a sale of TikTok’s United States operations. In September, President Donald Trump delayed enforcement of a law that threatened to ban the app. That delay created space for negotiations to continue. The final structure closely mirrors the framework announced during those talks.
TikTok said the deal allows more than 170 million Americans to keep using the platform. The company described the app as a global community offering creative and economic opportunities. Executives framed the agreement as essential for continuity and stability.
Stakes Divided Among Investors
ByteDance will retain a 19.9% stake in the American business under the agreement. Oracle, Silver Lake, and Abu Dhabi-based MGX will each control 15%. Affiliates of existing ByteDance investors will hold the remaining 30.1%. The White House previously stated that Oracle will license TikTok’s recommendation algorithm.
Delays Mark a Complicated Path
The deal follows repeated delays and political shifts. In April 2024, during President Joe Biden’s administration, Congress passed legislation targeting the app. Lawmakers demanded a sale or a nationwide ban over security fears. The law was due to take effect on 20 January 2025.
President Trump postponed enforcement several times after returning to office. His administration worked to broker an ownership transfer acceptable to both governments. In September, Trump said he spoke by phone with Chinese President Xi Jinping. Trump said Beijing approved the deal in principle.
Diplomacy and Trade Tensions Loomed Large
Uncertainty persisted after Trump and Xi met face to face in October. Trade disputes and strategic rivalry continued to cloud negotiations. Analysts said the app became entangled in broader geopolitical tensions. Alvin Graylin of the Massachusetts Institute of Technology described TikTok as leverage in the wider relationship.
Graylin said easing tensions allowed both sides to claim success. He argued Beijing’s approval looked like careful de-escalation rather than surrender. The structure and algorithm licensing helped both capitals present domestic victories.
Mixed Reactions in Washington
When asked for comment, the White House directed inquiries to TikTok. Oracle and Silver Lake declined to respond publicly. MGX did not immediately comment. The deal faced criticism from some lawmakers, including Democratic Senator Ron Wyden of Oregon.
Wyden argued the agreement fails to protect American user privacy. He said retraining the algorithm may not place it in safer hands. Wyden opposed the 2024 law but pushed to extend deadlines. He wanted Congress to gain more time to address security risks from China.
Algorithm Changes and User Concerns
Under the terms, TikTok will retrain its recommendation algorithm using American user data. The company said the process will reduce risks of external manipulation. Critics remain unconvinced about the effectiveness of these safeguards.
Some users also expressed caution about new ownership. Small business owner Tiffany Cianci said she hopes investors preserve the current experience. Cianci has more than 300,000 followers and nearly four million likes on the platform.
Small Businesses Watch Closely
Cianci said she wants protections for entrepreneurs who rely on the app. She said TikTok offers profit-sharing terms better than rivals like Meta. TikTok has stated that more than seven million American small businesses use the platform. Cianci said she will reserve judgment on whether the deal truly saves the app for them.
Over the past year, she helped organize protests in Washington and online. The campaigns aimed to prevent a ban and protect creator livelihoods. For many users, the deal brings relief but not full certainty.
